Warrant ties former Access chief to bribery, fraud

Newly released court documents show that the former president and CEO of Access HealthSource, Frank Apodaca, is suspected by federal authorities of wire fraud, money laundering, theft or bribery and mail fraud.

The alleged violations are listed in the federal seizure warrant used by the FBI to confiscate some of Apodaca's assets in May. The warrant became public Wednesday. The document was signed by U.S. District Court Judge Frank Montalvo in May, and the FBI used it to confiscate more than $75,000 from Apodaca's accounts at GECU.

Neither Apodaca, who has not been charged or arrested, nor his lawyer, Ray Velarde, could be reached for comment Wednesday.

The document is a part of a series of documents filed by the government, by Apodaca's lawyer and by lawyers for the credit union as they prepare for a hearing Friday in which Montalvo may rule on who gets to keep Apodaca's money.

Apodaca and Access HealthSource, a third-party health insurance administrator in El Paso, were among the first to be searched by FBI agents as part of a wide-ranging public corruption investigation, and they were the first to have assets frozen by the FBI. Apodaca was terminated earlier this month by Access Health Source's parent company.

The public corruption investigation has resulted in three people pleading guilty to conspiracy charges-- John Travis Ketner, former chief of staff for County Judge Anthony Cobos; Betti Flores, former county commissioner; and Bernardo Lucero Jr.

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, the vice president of Lucero/Melendez Archi tects.

Ketner pleaded guilty in June to two counts of conspiracy to commit mail fraud, one count of conspiracy to commit wire fraud and one count of conspiracy to commit bribery. In the process, he implicated 17 other county officials, individuals and companies, including one person who was determined to be Flores.

In July, Flores pleaded guilty to six counts of conspiracy to commit mail or wire fraud linked to trading her votes as a commissioner for money.

Earlier this month, Lucero pleaded guilty to conspiracy to commit mail fraud and conspiracy to make false statements to obtain a loan to allegedly influence an unnamed board member of the El Paso Independent School District.

None has been sentenced, and no sentencing dates have been set.

The charges to which they pleaded guilty are similar to the alleged violations listed in the seizure warrant for Apodaca's bank accounts.

This summer, GECU filed a civil suit asking the courts to figure out whether the FBI or Apodaca was the rightful owner of the money confiscated from the credit union because both the government and Apodaca were claiming the money, and both had been paid the money, court records show.

Montalvo, who is presiding over the case, has scheduled a hearing for Friday at the U.S. Courthouse in Downtown El Paso to gather more information, including testimony from the parties involved.

Court documents show the battle over Apodaca's money began in May after FBI agents went to GECU to seize Apodaca's assets.

The U.S. attorney's office alleges through court documents that when FBI agents went to the bank May 21 to execute the seizure warrant, Apodaca's accounts at GECU totaled about $91,000. At that time, agents were told by GECU officials that the money would be frozen and that a check would be issued to the government in that amount the next day.

The warrant was served at GECU the same day FBI agents seized two luxury vehicles and a motorcycle at Apodaca's Upper Valley home. Agents took a 2004 Cadillac Escalade, a 2002 Mercedes Benz and a Harley-Davidson Road King motorcycle.

The U.S. attorney's office alleges GECU allowed Apodaca to withdraw $77,000 on May 22 despite being served with the seizure warrant the day before.

When FBI agents went back to GECU on May 23 to collect the cashier's check from Apodaca's accounts, credit union officials at first gave agents a check for about $14,000, the amount left after Apodaca made the withdrawal.

After FBI agents brought up the discrepancy, credit union officials issued the FBI a check for $75,936 made payable to the U.S. Marshal of the Western District of Texas, the U.S. attorney's office states in court documents.

Court documents filed by GECU lawyers this week along with the seizure warrant state that money in Apodaca's accounts listed in the seizure warrant totaled $14,405.

However, in addition to those funds Apodaca had a certificate of deposit account that was not listed in the warrant.

GECU lawyers state that Apodaca on May 22 was allowed to withdraw "all deposited funds from that account," which totaled $75,936. On May 23, the FBI was informed by bank officials that Apodaca had withdrawn the money, and at the FBI's request, bank officials gave the agents a cashier's check for the same amount of money Apodaca had received the day before. Neither has returned the money.

"As a result, Plaintiff GECU has essentially paid twice for a single obligation," the document states. "Thus, either Defendant Apodaca (and/or his counsel) or Defendant U.S. is in possession of funds that rightly belong to Plaintiff GECU."

GECU is asking Montalvo to rule who is entitled to the money so GECU can get it back from the other party.

GECU lawyers claim federal officials can be forced to return the money because they were required by law to send a written notice within 60 days of the seizure to the bank or to Apodaca about the seizure of the property.

GECU lawyers allege the notices were not sent and because of that oversight, the law requires the federal government to return the seized funds.

Tammy Fonce-Olivas may be reached at tfonce@elpasotimes.com; 546-6362.

Ramon Bracamontes may be reached at rbracamontes@elpasotimes.com; 546-6142.